Bộ Tài chính proposes writing off more than 940 billion dong in debt for My Dinh Sports Complex

The Ministry of Finance has recently submitted a document to the Government Office regarding the outstanding land lease debt of the My Dinh National Sports Complex.

According to the document, as of November 30, 2023, the My Dinh National Sports Complex has accumulated a total debt of 941.7 billion dong. This includes 475.2 billion dong in land lease payments, 7.2 billion dong in corporate income tax, 974 million dong in administrative fines, and 458.2 billion dong in late payment fees.

Currently, the complex is under coercion by the Hanoi Tax Department to settle its tax debts by deducting money from its accounts and suspending the use of invoices.

Regarding the proposal to write off the debts and not count the late payment fees, the Ministry of Finance states that according to the provisions of the Tax Administration Law on cases eligible for debt write-off, the complex does not fall into the category where debts can be written off and late payment fees exempted.

“Therefore, the tax authorities have no basis for implementing the debt write-off and not counting the late payment fees for the outstanding tax and land lease debts of the complex, as suggested by the Ministry of Culture, Sports, and Tourism,” the Ministry of Finance stated.

The difficulty of tax enforcement

Previously, during the explanation session on the construction, management, and use of cultural and sports facilities in the period from 2013 to 2023 organized by the National Assembly’s Committee on Culture, Education in January 2024, Minister of Culture, Sports, and Tourism Nguyen Van Hung spoke about the tax debts of the complex.

According to Minister Nguyen Van Hung, tax enforcement against the My Dinh National Sports Complex is very challenging. The Ministry of Culture, Sports, and Tourism is also directing the development of a comprehensive plan for the efficient exploitation and use of state assets and public investment, including the My Dinh National Sports Complex.

The conclusion of the Government Inspectorate pointed out that since 2003, the management board of the My Dinh National Sports Complex has signed a contract with Tan An Binh Co., Ltd. for investment cooperation in the construction of a gas distribution station and handed over 865m2 of land within the Aquatic Sports Complex for this company’s use.

However, the Management Board of the My Dinh National Sports Complex did not mention the financial obligations for the land in the contract with Tan An Binh Co., Ltd., resulting in this company not having to pay any land lease fees for 15 years, leading to a loss for the state budget.

Source: Business Today